Canada names Hanwha, Thyssenkrupp as ‘qualified suppliers’ for new submarine program

WASHINGTON — The Canadian government has announced that South Korea’s Hanwha Ocean and Germany’s Thyssenkrupp Marine Systems have been named “qualified suppliers” for the Canadian Patrol Submarine Project.

“The advanced submarines will give our Navy the confidence and capabilities to respond effectively to emerging threats, while creating opportunities for Canadian industry. Identifying TKMS and Hanwha as the qualified suppliers marks an important step toward the procurement of this critical capability,” Stephen Fuhr, the secretary of state for defence procurement, said in a government statement on Tuesday.

Canada said it plans to purchase up to a dozen new subs, with a reported price tag of $60 billion CAD ($43.5 billion USD), to replace the Royal Canadian Navy’s current Victoria-class boats, an aging fleet originally purchased from the United Kingdom’s Royal Navy in 1998. The older fleet is expected to remain operational into the mid-to-late 2030s “to ensure a smooth transition between classes without a capability gap.” The first new submarine is expected to be delivered by 2035.

“As part of the next steps, Canada will conduct in-depth engagements with the 2 qualified suppliers to continue to advance the procurement process,” according to a government statement.

Hanwha and Thyssenkrupp had stiff competition. Numerous shipbuilders from across Europe and Asia had publicly thrown their hats in the ring for conventional submarine program. The request for information Canada issued from September 2024 to February 2025 for options on everything from capabilities to training solicited 25 responses, according to the government.

“Hanwha Ocean is extremely pleased to have been selected by the Government of Canada as a qualified supplier for the Canadian Patrol Submarine Project (CPSP),” the company said in a statement following the announcement. Hanwha is offering what it calls the KSS-III Canadian Patrol Submarine.

“Hanwha can deliver four KSS-III CPS to fully replace Canada’s current Victoria Class fleet before 2035 if on contract in 2026. Earlier retirement of the Victoria class fleet will result in estimated savings of approximately $1 billion on maintenance and support costs. The additional 8 submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 submarines can be delivered to Canada by 2043. No other option can come anywhere close to this delivery schedule,” according to a company statement.

Breaking Defense has reached out to Thyssenkrupp for comment about Canada’s announcement.

One of those competitors was the Swedish company Saab, which put forward its C71 ‘Expeditionary’ submarine. Following Canada’s announcement, a company spokesman told Breaking Defense, “We can confirm that we have received information from Canadian authorities regarding their next step in the submarine procurement process. Saab’s submarine offer remains, as we stand behind its value for the Royal Canadian Navy and Canadian industry, but we ultimately respect their decision. Canada has long been a close partner and ally, and we will continue to deliver for the Canadian Armed Forces on our ongoing programs and look to future opportunities for close cooperation with Canada across the entire defence sector.”

RELATED: How Saab Is Betting Big On Its C71 ‘Expeditionary’ Subs To Win Canadian Contest

“Today, Canada takes another step toward acquiring next-generation submarines for the Royal Canadian Navy. This is about defending our sovereignty, protecting Canadians, and ensuring our armed forces have the tools they need. Through the Canadian Patrol Submarine Project, we are strengthening alliances, diversifying defence partnerships, and creating opportunities for Canadian industry,” David McGuinty, minister of national defence said in a statement.